Search brisbanetimes:

Search in:

NSW slams PM's 'convenient omission'

The federal government could do more to slash electricity bills by scrapping the carbon tax than with its new plan to tackle over-investment by power companies, the NSW government says.

Prime Minister Julia Gillard on Sunday unveiled a strategy to address power price-drivers such as the "gold plating" of Australia's electricity networks.

The government says the plan, which also includes a funding boost for the Australian energy regulator and rewards for power-hungry businesses that reduce energy use during peak periods, will help Australian families save $250 in bills each year.

But acting NSW Energy Minister Katrina Hodgkinson says householders in the state could save $270 a year if the government simply scrapped its carbon tax and green schemes.

Advertisement

"It's remarkable that the prime minister fails to list the carbon tax as a key contributor of rising prices, a convenient omission given the federal government is the only government in Australia with a specific policy to increase electricity prices via a carbon tax," Ms Hodgkinson said in a statement.

"In addition, most of the savings being promised by the federal Labor government appear to rest on time-of-use pricing, but they are silent on the issue of the smart meters needed to implement it and the cost of any roll-out."

The NSW government is to ask its federal counterpart to strengthen the national regulator by making it fully independent of the Australian Competition and Consumer Commission.

The request will be made at the Council of Australian Governments meeting on Friday.